Hi begginer here…
Ive been following USD/CHF (30min) today and I saw this…
Is this kind of extrem move up and then down due to a fundamental factor?
The price looks to be heading back to the 38.2 fib level as support… what would you guys do next?
Many thanks…
USD/CHF also presents a mixed picture on D1. This is an interesting chart, showing a pattern which I don’t think has any name or statistical track record, though I think I once saw someone putting up the theory that the initial dramatic bullish move sets up an “earthquake pattern”, and an equally sharp correction is to be expected. I never saw this referenced again but it seem it would have been a good description in this case.
It’s a consolation to me that the m30 time-frame does not make the situation any clearer, but then again, it rarely does. I am not considering getting into USD/CHF, thre are more obvous opportunities all over the place.
May’s Inflation data was released in the US at 8:30 New York.
… Wait until later today at 14:00 NY for a bigger move like that.
UsdChf is inversely correlated to the EurUsd. This is very important news to pay attention to in the US today. What’s most disturbing is both of those big candles are gaps, but show as solid candles.
Lol wtf are you talking about Earthquake Pattern. That’s looking at shapes in the clouds.
ECB cut rates Thursday, UsdChf go up. Then CPI data is lower today, UsdChf go down. Those are two very high risk events in which market makers pull their orders ahead of time, lowering liquidity, making price moves more dramatic.
Like I said, it’s someone else’s pattern not mine, I don’t know who the guy was so I don’t vouch for his credibility, I don’t use the pattern, I have never recommended it, I never saw it referenced again anywhere, and the guy could have been talking through his arse.
I don’t dispute what you say about the underlying fundamental events in this case.
